Spy claims expose cracks in Merkel’s coalition

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A widening scandal over claims Germany helped the US spy on European targets triggered tensions in Angela Merkel’s coalition Tuesday, which analysts said could potentially prove dangerous for the “untouchable” chancellor.

Pressure has mounted over reports that Germany’s BND foreign intelligence agency snooped on European firms such as EADS, which became Airbus, as well as the French presidency and EU Commission on behalf of the US National Security Agency (NSA).

In the latest diplomatic fallout, Austria’s government said Tuesday it had filed a legal complaint against an unnamed party concerning “secret intelligence to the detriment of Austria”.

German Economy Minister and Social Democratic Party (SPD) leader Sigmar Gabriel took the affair up a notch Monday, breaking a “taboo” by relaying a personal conversation he’d had with Merkel on the issue.

Gabriel, who is also vice-chancellor, said he had twice asked Merkel if there was evidence of economic espionage.

“Both times the answer was no from the chancellor,” he said, adding he had no doubt she had answered his question “correctly”.

However he said that if it turned out that Germany had had a hand in helping the US snoop on companies, it “would be a big strain on the faith of the (German) economy in governmental behaviour”.

“Gabriel’s strike!” said Bild daily, while Spiegel Online said the

SPD chief had “distanced” himself from Merkel. The centre-left Sueddeutsche Zeitung newspaper said the SPD had “attacked” the chancellor.

Analysts viewed it as a “clever” manoeuvre by Gabriel, whose SPD party, junior partners in the “grand coalition”, continues to lag far behind Merkel’s conservatives in the polls. He brought responsibility over the now weeks-long controversy to Merkel’s door, while stopping short of openly challenging her, they said, seeing potential for the three-time chancellor to take a hit.